Sensex recovers 40 pts on buying on bluechip stocks

The Bombay Stock Exchange benchmark Sensex on Wednesday closed 40 points higher on buying in blue-chip stocks available at attractive lower levels amid a better trend in overseas markets.
The 30-share barometer had rallied more than 200 points to an intra-day high of 16,817.69 on the back

The 30-share barometer had rallied more than 200 points to an intra-day high of 16,817.69 on the back of higher US cues and revival of monsoon rains. However, fag-end profit booking pulled down the index to close at 16,657.89 points, showing a gain of 40.79 points from its previous close.

The barometer had lost 500 points in last two trading sessions.

The wide-based National Stock Exchange index Nifty regained 5,000 points level by adding 13.20 points to close at 5,000.30 points.

Marketmen said small gains in the overseas markets on expectations of some solution to the eurozone debt crisis and reports the Chinese export growing 50 per cent in May, mainly fuelled the uptrend.

The Chinese market index Shanghai rose by 2.78 per cent, Hong Kong's Heng Seng by 0.69 per cent and the European markets commenced higher this afternoon.

Bharti Airtel, the largest wireless operator, rose by 5.57 per cent to Rs 272.15 after completion of the acquisition of African operation of Zain Telecom. SAIL rose by 1.61 per cent to Rs 192.55 after its stock ratings were raised. ACC, the biggest cement maker, rose by 1.99 per cent to Rs 858 after it reported increase in sales.

However, ITC declined by 4.19 per cent, Tata Power by 2.32 per cent, TCS by 1.96 per cent and Infosys by 1.04 per cent, which capped the gains in the Sensex.

The auto sector stocks were in demand after the industry recorded the highest sales in May, lifting the sectoral index by 0.35 per cent to 7,710.23 as stocks of Maruti Suzuki, Mahindra and Mahindra and Ashok Leyland recorded handsome gains.

The metal sector index gained the most by rising 1.54 per cent to 14,101.83 points followed by the healthcare index by 1.36 per cent to 5,530.29 points. Oil and gas sector index rose by 1.28 per cent to 9,942.76.

On the back of wide based buying, the midcap index rose by 0.48 per cent to 6,790.78 and smallcap index by 0.29 per cent to 8,492.50.